Condemnation Of High APR And Unethical Practices

Nov. 28, 2011 - PRLog -- Has the recession ended, or is it just beginning? This is a question to which no one knows the answer. 2011 has seen loan rates reach the highest level for more than a decade, but is worse yet to come?

In recent years, finance companies have been succeeding high amounts of money from us by offering extortionate APR rates. CompareLogbookLoans.co.uk, a comparison site that gives you choice, has condemned these excessive rates and shady lending practices.

“Although consumers have to accept that certain types of loans will carry a higher risk for the lender and hence a higher interest rate, certain lenders use expensive and catchy advertising to convince customers into paying multiple times above the going rate for their loans.” Says Sam Sinton, founder of http://www.comparelogbookloans.co.uk  and with typical APRs of over 4200% in many cases it hard to disagree.

These practices may convince the consumer that such loans are an easy fix, but in reality the astronomical interest rates can lead to a never ending spiral of debt for the uninformed consumer.
Sites such as CompareLogbookloans.co.uk help consumers by offering an easily comparable choice between the most competitive lenders, so that they can make the best decision possible for their circumstances.

Sam Sinton believes that “In today’s economy people just need a little help and advice but instead they are being taken advantage of. There is no need to charge such unrealistic APRs; responsible lenders can easily operate a successful and ethical business by charging a lower APR and actually offering help and advice to those who need it the most.”

These shady practices are not going unnoticed by consumers and the sharp rise in price comparison sites should help consumers not to be taken in by clever advertising campaigns and to make informed decisions for themselves.

It’s fair to say that the state of the economy hasn’t helped anyone, but there have to be valid reasons for these high APRs. The Consumer Finance Association (CFA) has already called for action to be to be taken to ensure the cost of loans are more transparent, but until then shopping around for the best deal and ensuring you read the small print is a must.